How To Use Pastel Evolution With Fixed Assets

(1)

PASTEL EVOLUTION

FIXED ASSETS

LEARNING OUTCOME

This course will take you through the process of setting up the with the depreciation journals as well as keeping track of all your

LEARNING OBJECTIVES

On completion of the course, the student will understand the functionality of:

• Installation

• Setting Up Defaults • Fixed Assets Setup • Ledger Accounts • Depreciation Methods • Asset Types

• Block Assets

• Cost Centres and Departments • Locations

• Capex Budget

• Creating Capex Orders • Creating New Assets

• Create a Unit of Measure Depreciating Asset • Creating a Sub Asset

• Creating an Asset with Multiple Units • Asset Transactions

• Using the General Ledger Batch Function • Other Assets Processing

• Asset Tracking

• Fixed Assets Enquiries and Reports

Requirements: Ensure that you have

EVOLUTION

FIXED ASSETS

will take you through the process of setting up the Fixed Assets Module to assist with the depreciation journals as well as keeping track of all your fixed assets.

, the student will understand the functionality of:

of Measure Depreciating Asset

Units

Using the General Ledger Batch Function

Fixed Assets Enquiries and Reports

Ensure that you have loaded and registered the Fixed Assets Module. odule to assist

P

a

s

te

l

E

v

o

lu

ti

o

n

:

F

ix

e

d

A

s

e

ts

(2)

LESSON OVERVIEW

Section N

Reports

Section M

Enquiries

Section L

Asset Transactions

Section K

Create Assets

Section J

Other

Section I

Capex Orders

Section H

Capex Budgets

Section G

Locations

Section F

Block Assets

Section E

Asset Types

Section D

Depreciation Methods

Section C

Ledgers

Section B

Defaults

Section A

Installation

(3)

Pastel Evolution © Pastel

A

INSTALLATION

Pastel Fixed Assets is a Pastel Evolution module that can be insta program.

There are two steps in the installation process:

1. Installing SDK or ensure that you have it installed on your machine. 2. Installing the Pastel Fixed Assets Module.

INSTALLING THE SDK

The first step in this process is to install the SDK from your Pastel Partner 2009 Installation disk. Details of the installation are given below.

1. Insert the Pastel Partner 2009 installation disc Automrun screen opens, close it by clicking on Exit.

2. Open the Windows Explorer by

3. Right click on the CD drive for example,

4. From the system tree, double click on the Products folder

5. In the SDK folder, locate and double click Setup.exe.

Fixe

Evolution module that can be installed as a stand-alone

There are two steps in the installation process:

Installing SDK or ensure that you have it installed on your machine. Installing the Pastel Fixed Assets Module.

rst step in this process is to install the SDK from your Pastel Partner 2009 Installation Details of the installation are given below.

2009 installation disc in the disc drive. When the installation close it by clicking on Exit.

double clicking on My Computer.

for example, D:\ and select Explore.

ouble click on the Products folder and then on the SDK folder

and double click Setup.exe.

ixed Assets • 3

alone

rst step in this process is to install the SDK from your Pastel Partner 2009 Installation

the installation

(4)

6. Click Next on the

Agreement. If you agree with the terms, select the option. If you do not agree with the terms, you will select the second option and the installation will

Click on Next

7. In the following screen, select to install “User Components”

8. On the next screen, you will select

The installation wizard will advise you once the process is complete. Click on the InstallShield Wizard.

The SDK must be registered before you can integrate with Pastel Fixed Assets. You will do this by reregistering your Pastel

number that you will receive when you buy Pastel Fixed Assets.

Once you have installed

on the Welcome screen and then read through the Software License Agreement. If you agree with the terms, select the option. If you do not agree with the terms, you will select the second option and the installation will

Next once you have accepted the license agreement. ollowing screen, select to install “User Components” and click

On the next screen, you will select Install to install the SDK on your computer.

The installation wizard will advise you once the process is complete. Click on the InstallShield Wizard.

The SDK must be registered before you can integrate with Pastel Fixed Assets. You will do this by reregistering your Pastel Partner 2009 with a new serial number that you will receive when you buy Pastel Fixed Assets.

Once you have installed and registered the SDK, you will need to install Pastel Fixed Assets. n read through the Software License Agreement. If you agree with the terms, select the option. If you do not agree with the terms, you will select the second option and the installation will not continue to run.

license agreement.

and click Next.

to install the SDK on your computer.

The installation wizard will advise you once the process is complete. Click on Finish to close

The SDK must be registered before you can integrate with Pastel Fixed Assets. Partner 2009 with a new serial number that you will receive when you buy Pastel Fixed Assets.

(5)

INSTALLING PASTEL FIXED ASSETS

Pastel Fixed Assets is installed from the Pastel Evolution installation.

Evolution program will be installed on your computer. The Fixed Assets part of Evolution will be activated when you register.

Pastel Evolution is installed as follows.

1. Explore the installation disc. Locate below.

2. In the Customer Information screen, you will enter the name of your

select the country. If you are not sure of the information to be entered in this field, consult your IT Department. Click

3. The next screen is the End User Licen

order to proceed, you would need to select the “I

Fixe

INSTALLING PASTEL FIXED ASSETS

Pastel Fixed Assets is installed from the Pastel Evolution installation. The whole Pastel be installed on your computer. The Fixed Assets part of Evolution will

ows.

ocate the Setup.exe and double click on it, as shown

In the Customer Information screen, you will enter the name of your organisation If you are not sure of the information to be entered in this field, consult your IT Department. Click Next.

The next screen is the End User Licence Agreement. Read through the agreement. In order to proceed, you would need to select the “I Agree..” option.

ixed Assets • 5

whole Pastel be installed on your computer. The Fixed Assets part of Evolution will

shown

organisation and If you are not sure of the information to be entered in this field,

(6)

4. You will now select the location for the Pastel Evolution program. It is best to leave this option as it appears and click on

It is advised to tick the box to always check for new versions. This option will

automatically check for new version of the software in the location specified at the top. This will enable you to always work / process in the latest version. These new ver usually include things like fixes that were made, new additions or features and other functions. Thus, it is advised to

5. On the Installation Type screen, you will need to select Server / Stand Alone / Administrator. If you ha

the server version on the server and then the Workstation version on the users’ computers.

On this screen, the Install Microsoft SQL Server 2005 Express Edition option is greyed out because it is already installed. If the option is active, tick the box to install.

You will now select the location for the Pastel Evolution program. It is best to leave this option as it appears and click on Next.

automatically check for new version of the software in the location specified at the top. This will enable you to always work / process in the latest version. These new ver usually include things like fixes that were made, new additions or features and other functions. Thus, it is advised to upgrade your software.

On the Installation Type screen, you will need to select Server / Stand Alone /

Administrator. If you have more than one licence for Pastel Fixed Assets, you will install the server version on the server and then the Workstation version on the users’

On this screen, the Install Microsoft SQL Server 2005 Express Edition option is greyed ause it is already installed. If the option is active, tick the box to install.

You will now select the location for the Pastel Evolution program. It is best to leave this

automatically check for new version of the software in the location specified at the top. This will enable you to always work / process in the latest version. These new versions usually include things like fixes that were made, new additions or features and other

On the Installation Type screen, you will need to select Server / Stand Alone /

ve more than one licence for Pastel Fixed Assets, you will install the server version on the server and then the Workstation version on the users’

On this screen, the Install Microsoft SQL Server 2005 Express Edition option is greyed ause it is already installed. If the option is active, tick the box to install.

(7)

6. Leave the options on the Selected Components screen as they are and click on

7. Pastel Evolution will now request details for the shortcut icons that you want it to c Select the options that you want and click on

8. The installer will now advise you that it has enough information to install, and ask you to confirm the installation. As the installation runs, a progress indicator will display how far along the installation is.

Fixe

Leave the options on the Selected Components screen as they are and click on

Pastel Evolution will now request details for the shortcut icons that you want it to c Select the options that you want and click on Next.

The installer will now advise you that it has enough information to install, and ask you to confirm the installation. As the installation runs, a progress indicator will display how far

ixed Assets • 7

Leave the options on the Selected Components screen as they are and click on Next.

Pastel Evolution will now request details for the shortcut icons that you want it to create.

The installer will now advise you that it has enough information to install, and ask you to confirm the installation. As the installation runs, a progress indicator will display how far

(8)

9. When the installation is complete, the following message will be displayed.

Once you have installed Pastel Evolution, open it via the shortcut icon on your desktop or your Start Menu. When you open Pastel Evolution for the fir

a Common Database. This is where Pastel Evolution stores your registration details. The following steps detail this process.

1. The Login screen will display. database.

2. When you have clicked on

When the installation is complete, the following message will be displayed.

Once you have installed Pastel Evolution, open it via the shortcut icon on your desktop or your When you open Pastel Evolution for the first time, you will be prompted to create a Common Database. This is where Pastel Evolution stores your registration details. The following steps detail this process.

screen will display. On this screen, you will select New

When you have clicked on New, the Create Database Wizard

When the installation is complete, the following message will be displayed.

Once you have installed Pastel Evolution, open it via the shortcut icon on your desktop or your st time, you will be prompted to create a Common Database. This is where Pastel Evolution stores your registration details. The

New to create a new

(9)

3. In the SQL Server Name list box, choose the server name. If Microsoft SQL Server is running on this computer, choose

4. SQL Server access control can originate in Microsoft Windows or in SQL Server itself. you do not have the necessary skills in your organisation, choose the option to use Windows NT authentication. Anyo

program. However, they would still need a login name and password, which you set up in the company, before they can access the company.

5. Enter the name of the new database in the numbers and spaces, but no punctua name Course Company.

Your screen should display as follows:

6. Click Next.

7. The following dialogue should appear:

8. Click Yes.

Fixe

list box, choose the server name. If Microsoft SQL Server is running on this computer, choose (local) from the drop-down box.

SQL Server access control can originate in Microsoft Windows or in SQL Server itself. you do not have the necessary skills in your organisation, choose the option to use Windows NT authentication. Anyone who logs into the network will have access program. However, they would still need a login name and password, which you set up in the company, before they can access the company.

Enter the name of the new database in the New Database Name field. Use letters, numbers and spaces, but no punctuation or special characters. Enter the new database

Your screen should display as follows:

appear:

ixed Assets • 9

list box, choose the server name. If Microsoft SQL Server is

SQL Server access control can originate in Microsoft Windows or in SQL Server itself. If you do not have the necessary skills in your organisation, choose the option to use

access to the program. However, they would still need a login name and password, which you set up

field. Use letters, tion or special characters. Enter the new database

(10)

9. The system will then start creating the common database.

Click on Finish to start the process.

The system will then start creating the common database.

(11)

10. Click on Finish. Pastel Evolution Next to start the registration process.

11. In the next screen, you will enter the company name and licence type. The company name must be entered exactly as it appears on your invoice from Pastel. For this training course, you will use the Educational Registration type.

Fixe

Pastel Evolution will now display the Registration Screen. Click on to start the registration process.

In the next screen, you will enter the company name and licence type. The company must be entered exactly as it appears on your invoice from Pastel. For this training course, you will use the Educational Registration type.

ixed Assets • 11

Click on

In the next screen, you will enter the company name and licence type. The company must be entered exactly as it appears on your invoice from Pastel. For this

(12)

12. Click on Next and the following screen will be displayed.

13. When you register your package in practi You will then be given a PIN Number.

Call the number

Number and in return provide you with the

This registration

Click on Next and the following screen will be displayed.

When you register your package in practice, you will select Licensed You will then be given a PIN Number.

all the number displayed on the screen. A Pastel Consultant will ask your for the and in return provide you with the registration code.

registration code is unique and will not work on another computer.

Licensed and then Next.

. A Pastel Consultant will ask your for the PIN

(13)

14. The final screen in the registration processes is a confirmation screen. It displays information about your registration, and you should check it carefully to make sure that the details are correct. You are able to print the information for future reference.

Click on Finish.

15. When you register using a registration code for only the Fixed Assets module of Pastel Evolution, only the relevant parts of Pastel Evolution will be activated.

your company, the screen will display as shown below.

Now that you have finished installing and registering the SDK and Pastel Evolution, you are ready to set up the defaults for the integration.

The login screen is case sensitive. Thus, if your password is Admin, you have to type in Admin (with A as uppercase) and

system will not recognise it and inform you that you have entered the incorrect password.

Fixe

The final screen in the registration processes is a confirmation screen. It displays information about your registration, and you should check it carefully to make sure that

correct. You are able to print the information for future reference.

When you register using a registration code for only the Fixed Assets module of Pastel Evolution, only the relevant parts of Pastel Evolution will be activated. When you open your company, the screen will display as shown below.

Now that you have finished installing and registering the SDK and Pastel Evolution, you are ready to set up the defaults for the integration.

in screen is case sensitive. Thus, if your password is Admin, you have to type in Admin (with A as uppercase) and not admin (as lowercase), otherwise the system will not recognise it and inform you that you have entered the incorrect

ixed Assets • 13

The final screen in the registration processes is a confirmation screen. It displays information about your registration, and you should check it carefully to make sure that

correct. You are able to print the information for future reference.

When you register using a registration code for only the Fixed Assets module of Pastel When you open

Now that you have finished installing and registering the SDK and Pastel Evolution, you are

in screen is case sensitive. Thus, if your password is Admin, you have to admin (as lowercase), otherwise the system will not recognise it and inform you that you have entered the incorrect

(14)

B

DEFAULTS

DEFAULTS FOR FIXED ASSETS

Before you start using the Fixed Assets Module, there are a couple of questions that you need to answer:

1. At what date will depreciation of your fixed assets start? 2. Have you investigated the laws governing

assets?

Remember that depreciation of assets is governed by tax laws. Investigate this

matter with your local tax representative or Revenue Service.

The questions posed will differ from business to

answers for them. It is your duty to investigate the types of assets your business needs to acquire and set up the assets accordingly.

Let us work through the following activity

ACTIVITY 1

The objective of this activity is to set up your Fixed Asset Module’s defaults.

Mike’s Photo Shop started on 1st March. Up until the month of May, Mike has kept track of his fixed assets using a manual system and would like to record his assets in a register

financial year end. Mike has budgeted 310,000.00 for his business’s assets.

1. From your system

2. The following screen will display:

DEFAULTS

DEFAULTS FOR FIXED ASSETS

Before you start using the Fixed Assets Module, there are a couple of questions that you need

At what date will depreciation of your fixed assets start?

Have you investigated the laws governing depreciation regarding the different types of

Remember that depreciation of assets is governed by tax laws. Investigate this matter with your local tax representative or Revenue Service.

The questions posed will differ from business to business; therefore there are no right or wrong answers for them. It is your duty to investigate the types of assets your business needs to acquire and set up the assets accordingly.

Let us work through the following activity.

ACTIVITY 1 - 1

objective of this activity is to set up your Fixed Asset Module’s defaults.

Mike’s Photo Shop started on 1st March. Up until the month of May, Mike has kept track of his fixed assets using a manual system and would like to record his assets in a register

financial year end. Mike has budgeted 310,000.00 for his business’s assets.

system tree, select Fixed Assets Module…Maintenance The following screen will display:

Before you start using the Fixed Assets Module, there are a couple of questions that you need

depreciation regarding the different types of

Remember that depreciation of assets is governed by tax laws. Investigate this matter with your local tax representative or Revenue Service.

business; therefore there are no right or wrong answers for them. It is your duty to investigate the types of assets your business needs to

objective of this activity is to set up your Fixed Asset Module’s defaults.

Mike’s Photo Shop started on 1st March. Up until the month of May, Mike has kept track of his fixed assets using a manual system and would like to record his assets in a register before the financial year end. Mike has budgeted 310,000.00 for his business’s assets.

(15)

Pastel Evolution © Pastel Fixed Assets • 15

3. Now you will set your defaults, starting with the number of Periods in a year.

You can choose 6, 12, 26, 52, or 365 which indicates the following:

Periods: Explanation: 6 Fortnightly 12 Monthly 26 Bi-weekly 52 Weekly 365 Daily

The system breaks the year into equal periods accordingly. Usually this will be left as 12. Once the value has been set and your financial periods are created, you will not be able to change this.

4. You then set whether you want to force the input of a Cost Centre and/or a Location and/or Create Transaction GL Entries. If these options are deselected then Pastel Evolution will not force you to enter them when creating your asset codes. For Mike’s Photo Shop, select the Location required option.

Option Explanation

Cost Centre Required In this field, you decide whether the cost centre field is mandatory for each asset. If it is not mandatory, then some assets can have a cost centre, and others not. If you integrate by cost centre, the system makes the use of cost centers mandatory.

Location Required If you do analyse by location, you may very well want to ensure that each asset belongs in a location.

Create Transaction GL Entries If you integrate fixed assets to the general ledger, you can choose to generate general ledger transaction entries when you sell and/or dispose of assets.

(16)

5. On the GL Adjustment Options you select how Pastel Evolution Fixed assets must handle any adjustments that need to be made for earlier periods.

In Actual Period of Adjustment This option posts to every period that changes. For example, if you process depreciation once a year, this option tells Pastel Evolution to make an entry in every period of the year.

Individual Adjustments in This period

As opposed to the previous option, this option posts all adjustments to the current period. However, there is a posting line for every period that requires adjustment.

Single Adjustment in This Period This option also posts all adjustments to the current period. However, there is one line entry only, with no breakdown per period.

For Mike’s Photo Shop you will leave the default i.e. In Actual Period of Adjustment.

6. On the Depreciation Period options, you will select from which date to depreciate the new assets. Usually you would only depreciate the asset from the next period.

The options mean the following:

Option What it Does

Purchase Date Period calculation starts from the period of purchase. Next Period Calculation starts from the period after the purchase.

Calculated

Depreciation starts either from this period or from next period, depending on the purchase date and the day of the month you enter in the Cut-off Day field. If the purchase date is less than the cut-off day, depreciation begins in the period of purchase. If the purchase date is equal to or greater than the cut-off day, depreciation begins in the next period.

(17)

7. For the Take-on balances, you are able to select when Pastel Evolution must start depreciating the take-on assets.

When you start using the system, you already have assets and you have probably already posted depreciation into your general ledger. You do not want the system to include the already-posted depreciation in its posting.

The system lets you enter

take-calculates depreciation, it will subtract the take For details about the take-on function

asset take on balances.

Here you specify the period in which you start processing. The take obtain should be up to the period prior to the period you enter here.

8. If there are no periods set up for the fixed assets, you will need to Processing Period and select

the list that displays. Set up your periods and click on setting up periods refer to the Help Files by pressing

9. Enter the year start date of your business and click the year you are in and change the start date to 1

10. If you have selected the incorrect dates the system will warn you.

Remember you are setting up February of the next year.

you will not be able to change it again.

11. If everything was done correctly the system will generate the years.

period and click OK. This will ensure that your asset transaction will be processed in the correct tax year.

Fixe

balances, you are able to select when Pastel Evolution must start on assets.

you start using the system, you already have assets and you have probably already posted depreciation into your general ledger. You do not want the system to

posted depreciation in its posting.

-on depreciation values for your assets. When the system calculates depreciation, it will subtract the take-on values from the depreciation due.

on function refer to the data disc for a document on fixed

pecify the period in which you start processing. The take-on balances you obtain should be up to the period prior to the period you enter here.

up for the fixed assets, you will need to right click on First and select Maintenance. You then need to select Add New the list that displays. Set up your periods and click OK to save. For more information on setting up periods refer to the Help Files by pressing F1 on your keyboard.

of your business and click OK. For Mike’s Photo Shop, select the year you are in and change the start date to 1st March in the year you are working in.

If you have selected the incorrect dates the system will warn you.

Remember you are setting up the tax year for 1 March for the current year to February of the next year. When you have set these periods and saved them, you will not be able to change it again.

If everything was done correctly the system will generate the years. Select the first This will ensure that your asset transaction will be processed in

ixed Assets • 17

balances, you are able to select when Pastel Evolution must start

you start using the system, you already have assets and you have probably already posted depreciation into your general ledger. You do not want the system to

ation values for your assets. When the system due. refer to the data disc for a document on fixed

on balances you

First New from to save. For more information

. For Mike’s Photo Shop, select March in the year you are working in.

the tax year for 1 March for the current year to When you have set these periods and saved them,

Select the first This will ensure that your asset transaction will be processed in

(18)

You can also set up your periods by going to the

Module

12. Now, click on the

Here you can set your numbering requirements. It is advisable to tick the box indicating that you want

eliminating possible duplications.

For this activity leave the default settings to manually input account numbers and tick the box to ensure that new accounts are defaulted to uppercase account numbers.

13. In the Asset Tracking Numbering section of the screen, you will set your tracking numbering preferences.

The Asset Tracking feature allows you to track your assets and compare the physical count to the system count. This will be discussed in more detail later in this manual.

14. Click on the Supplier

As explained under the

manually input account numbers and tick the box to ensure that new accounts are defaulted to uppercase account numbers.

You can also set up your periods by going to the Fixed Asset Module…Maintenance…Accounting Periods.

Now, click on the Asset tab. The following screen displays:

Here you can set your numbering requirements. It is advisable to tick the box indicating that you want Uppercase Account Numbers Only. This is just for consistency and eliminating possible duplications.

activity leave the default settings to manually input account numbers and tick the box to ensure that new accounts are defaulted to uppercase account numbers.

In the Asset Tracking Numbering section of the screen, you will set your tracking ferences.

Supplier tab. The following screen displays:

As explained under the Asset tab. For this activity, leave the default settings to manually input account numbers and tick the box to ensure that new accounts are defaulted to uppercase account numbers.

Fixed Asset

Here you can set your numbering requirements. It is advisable to tick the box indicating . This is just for consistency and

activity leave the default settings to manually input account numbers and tick the box to ensure that new accounts are defaulted to uppercase account numbers.

In the Asset Tracking Numbering section of the screen, you will set your tracking

leave the default settings to manually input account numbers and tick the box to ensure that new accounts are

(19)

15. If you want to integrate Fixed Assets in Pastel Partner, you will use the options available under this tab.

Refer to the help files for more information on integration or call a support consultant at Pastel.

16. Click OK to save your defaults.

17. Your defaults have now been set up for Mike’s Photo Shop.

End of the activity.

We will now commence with setting up your ledger accounts before transacting Fixed Assets.

Before creating any assets, you will now need to set up the general ledger

accounts to which your fixed assets transactions should posted to.

C

LEDGERS

It is important to know which ledger accounts will be affected by your fixed asset transactions, especially when processing depreciation. Different depreciation methods require

ledger accounts and so on. Thus, for your own benefit it is advisable to consult with an expert or Revenue service before setting up your ledger accounts.

For the purposes of this lesson we will just introduce you to the process on how to set y ledger accounts.

If you do not integrate Fixed Assets to Pastel Partner or Evolution, you do not

need to set the ledgers up.

Let us complete the following activity:

Fixe

If you want to integrate Fixed Assets in Pastel Partner, you will use the options available

Refer to the help files for more information on integration or call a support consultant at

defaults have now been set up for Mike’s Photo Shop.

Before creating any assets, you will now need to set up the general ledger to which your fixed assets transactions should posted to.

It is important to know which ledger accounts will be affected by your fixed asset transactions, especially when processing depreciation. Different depreciation methods require different ledger accounts and so on. Thus, for your own benefit it is advisable to consult with an expert or Revenue service before setting up your ledger accounts.

For the purposes of this lesson we will just introduce you to the process on how to set your

If you do not integrate Fixed Assets to Pastel Partner or Evolution, you do not need to set the ledgers up.

ixed Assets • 19

If you want to integrate Fixed Assets in Pastel Partner, you will use the options available

Refer to the help files for more information on integration or call a support consultant at

Before creating any assets, you will now need to set up the general ledger

It is important to know which ledger accounts will be affected by your fixed asset transactions, different ledger accounts and so on. Thus, for your own benefit it is advisable to consult with an expert or

our

(20)

ACTIVITY 1

The objective of this activity is to 1. In the system

you can also go to the

2. A list of ledger accounts will appear. 3. Here is a basic structure of

business, for example,

• Computer Equipment accounts:

o Computer Equipment: Cost Account o Computer Equipment:

Remember the numbering system will differ from business to business.

The numbering system displayed during this lesson is the defaulted General Ledger Accounts which was selected during the installation process of Evolution.

4. Look at the following screen as an example:

5. If you are satisfied with the accounts you can leave them as is. If not, click on create the required ledger accounts.

6. When you have created all the required ledger accounts you different depreciation methods.

ACTIVITY 1 - 2

The objective of this activity is to set up Fixed Asset ledger accounts system tree go to your General Ledger Module…Maintenance you can also go to the Fixed Asset Module…Maintenance…

A list of ledger accounts will appear.

Here is a basic structure of the ledger accounts that will be needed per asset of your business, for example, Computer Equipment will need:

Computer Equipment as the main asset account (6100) accounts:

Computer Equipment: Cost Account [6100>010] Computer Equipment: Accumulated Depreciation

The numbering system displayed during this lesson is the defaulted General Ledger Accounts which was selected during the installation process of Evolution.

Look at the following screen as an example:

you are satisfied with the accounts you can leave them as is. If not, click on create the required ledger accounts.

When you have created all the required ledger accounts you can advance to the different depreciation methods.

ledger accounts.

Maintenance…Accounts or …Ledger Accounts.

ledger accounts that will be needed per asset of your

(6100) and the following sub

Accumulated Depreciation [6100>020]

The numbering system displayed during this lesson is the defaulted General Ledger Accounts which was selected during the installation process of Pastel

you are satisfied with the accounts you can leave them as is. If not, click on Add and

(21)

D

DEPRECIATION METHODS

It is important to have set your defaults and ledger accounts before commencing with the different depreciation methods that your business needs.

If you go to Maintenance…Fixed Assets

will notice that there are already a few methods created by default in Pastel Evolution. They are:

Your business might require other types of depreciation methods. The the other methods available.

Method

Straight Line and Equal Allowance

Reducing Balance

Plant & Machinery

Fixe

DEPRECIATION METHODS

It is important to have set your defaults and ledger accounts before commencing with the different depreciation methods that your business needs.

Fixed Assets…Depreciation Methods from the main menu will notice that there are already a few methods created by default in Pastel Evolution. They

Your business might require other types of depreciation methods. The following table outlines

Explanation

Straight Line and Equal Allowance The useful lifespan of an asset is specified and depreciate the asset by an equal amount over time. With the Straight Line method you specify a percentage and with the Equal allowance method you specify a number of years. For example:

Y1 10000 x 10% = 1000

Thus, 10000 – 1000 = 9000 (Balance)

Y2 10000 x 10% = 1000

Thus, balance b/f is 9000 – 1000 = 8000 and so on...

A percentage depreciation is specified and each year the asset is depreciated by that percentage. The next year the depreciation is calculated on the previous year’s book value i.e. the original value less the depreciation. For example:

Y1 10000 x 10% = 1000 Thus, balance is 9000

Y2 9000 x 10% = 900 Thus, balance is 8100 and so on...

The useful lifespan of the asset is specified in years and the percentage depreciation per year is specified although the total depreciation over the number of years must equal 100%. For example, 4 years at the following ratio 50:30:10:10.

ixed Assets • 21

It is important to have set your defaults and ledger accounts before commencing with the

from the main menu, you will notice that there are already a few methods created by default in Pastel Evolution. They

following table outlines

The useful lifespan of an asset is specified and depreciate the asset by an equal amount over time.

percentage and with the Equal allowance method

(Balance)

1000 = 8000

A percentage depreciation is specified and each year the asset is depreciated by that percentage. The next year the depreciation is calculated on the previous year’s book value i.e. the original value less the years

The useful lifespan of the asset is specified in years specified although the total depreciation over the number of

(22)

Method

Immediate Write –

Units of Usage

0% Depreciation

Let us create a few methods

ACTIVITY 1

The objective of this activity is

Mike analysed his assets and identified a few depreciation methods that he would need to use in order to correctly process their depreciation.

We will now add the methods for Mike.

1. Go to the Fixed Asset Module

2. The list will appear as explained earlier. 3. Click on Add.

4. The following screen displays:

Explanation

–off The asset is depreciated 100% at the date of purchase.

The asset is depreciated in proportion to the number of units used e.g. Machine hours

No depreciation is calculated but the asset tracked.

create a few methods.

ACTIVITY 1 - 3

The objective of this activity is to add a new depreciation method

Mike analysed his assets and identified a few depreciation methods that he would need to use in order to correctly process their depreciation.

We will now add the methods for Mike.

Fixed Asset Module…Maintenance…Depreciation Methods The list will appear as explained earlier.

.

The following screen displays:

The asset is depreciated 100% at the date of

depreciated in proportion to the number of units used e.g. Machine hours.

No depreciation is calculated but the asset is still

add a new depreciation method.

Mike analysed his assets and identified a few depreciation methods that he would need to use

(23)

5. Let us create the following methods

• 12% Reducing Balance.

• Units of Usage for the Hi Tech Photo Printer

• Plant and Machinery for the Photo copier, 1), 20%, 20%, 20% and 10%

Fixe

us create the following methods for Mike’s Photo Shop:

for the Hi Tech Photo Printer of 1 000 000.

the Photo copier, 5 years with percentages of 30% , 20%, 20%, 20% and 10% (year 5) also written as 30:20:20:20:10.

ixed Assets • 23

(24)

To edit the year percentages, click on the

The system will prompt to save the depreciation method. Click

The following screen displays. Enter the specified percentages year number

6. All the required methods have been added, now we can commence to different asset types of Mike’s Photo Shop.

E

ASSET TYPES

When creating assets in your Pastel Evolution fixed asset register, you will be required to specify an asset type.

well as the general ledger information.

Book Depreciation Tax Depreciation

Let us complete the following

ACTIVITY 1

The objective of this activity is

It is important to do some research with regard to the different asset types your business acquired

depreciation method.

1. Select Maintenance …Fixed Assets …Asset 2. A list of the default asset types will appear.

To edit the year percentages, click on the Edit Year % button.

The system will prompt to save the depreciation method. Click

The following screen displays. Enter the specified percentages year number and click OK.

All the required methods have been added, now we can commence to different asset types of Mike’s Photo Shop.

ASSET TYPES

When creating assets in your Pastel Evolution fixed asset register, you will be required to specify an asset type. The asset type determines the book and tax depreciation method as well as the general ledger information.

Book Depreciation refers to the method that the business chose to use.

Tax Depreciation refers to the method stipulated by the tax laws of your country.

Let us complete the following activity.

ACTIVITY 1 - 4

The objective of this activity is to edit an existing asset type in Pastel Evolution

It is important to do some research with regard to the different asset types your business acquired or acquires to determine the correct ledger accounts and depreciation method. There is a lot of information about assets on the

Maintenance …Fixed Assets …Asset Type from the main A list of the default asset types will appear.

button.

The system will prompt to save the depreciation method. Click Yes.

The following screen displays. Enter the specified percentages corresponding with the

All the required methods have been added, now we can commence to entering the

When creating assets in your Pastel Evolution fixed asset register, you will be required to depreciation method as

refers to the method that the business chose to use.

refers to the method stipulated by the tax laws of your country.

asset type in Pastel Evolution.

It is important to do some research with regard to the different asset types your ledger accounts and a lot of information about assets on the internet.

(25)

3. Highlight the Furniture Asset Type

4. The details for this asset type will now appear.

5. If need be, you may enter your own description for these types of assets. 6. The Depreciation Ledger Accounts

selections.

If you have selected to integrate using Cost Centres, then the Depreciation

Expense account will not be available here.

7. The Depreciation Methods are then selected.

These Tax and book methods can be different. (The next activity will demonstrate

this note.)

8. The Revaluation and Insurance

adjustments to all the assets that belong to this asset group.

9. You are able to revalue or devalue assets by a fixed percentage or adjust their insurance values. Revaluing will trigger a

10. The insurance cost factor is the percentage value that you want to ensure the asset for. For full value, enter 100%.

11. The residual factor is the value that the asset will retain at the end of its useful life e.g. if it is sold as scrap.

Fixe

Furniture Asset Type and select Edit. The details for this asset type will now appear.

If need be, you may enter your own description for these types of assets.

Depreciation Ledger Accounts should now be selected from the drop down

to integrate using Cost Centres, then the Depreciation Expense account will not be available here.

are then selected.

Insurance percentage fields allow you to make uniform adjustments to all the assets that belong to this asset group.

You are able to revalue or devalue assets by a fixed percentage or adjust their insurance values. Revaluing will trigger adjustments depreciation.

factor is the percentage value that you want to ensure the asset for.

The residual factor is the value that the asset will retain at the end of its useful life e.g. if

ixed Assets • 25

should now be selected from the drop down

to integrate using Cost Centres, then the Depreciation

factor is the percentage value that you want to ensure the asset for.

(26)

12. If you are satisfied with your asset type set up, click

ACTIVITY 1

The objective of this activity is to

Setup all the asset types. Take special care when setting up the

would like to use the method as set up for Book depreciation even though for tax purposes he is allowed to use the plant and machinery method.

If you are satisfied with your asset type set up, click OK.

ACTIVITY 1 - 5

The objective of this activity is to set up the rest of the asset types

Setup all the asset types. Take special care when setting up the Machine asset type as Mike would like to use the method as set up for Book depreciation even though for tax purposes he is allowed to use the plant and machinery method.

set up the rest of the asset types.

Machine asset type as Mike would like to use the method as set up for Book depreciation even though for tax purposes he

(27)

Use the following screens to assist you in this task.

Fixe

se the following screens to assist you in this task.

(28)

You will

you create your “live” fixed assets register.

F

BLOCK ASSETS

This option will be used if you wish to stop depreciation on an asset for a specific period of time.

1. Go to Fixed Assets

2. Here are some options to consider when blocking assets:

• If you wish to block an asset between specific dates, check the From Date and To Date check boxes and enter the relevant dates.

• If you wish to

check the To Date and enter the last date to block depreciation in the To Date's field. The block applies from now on.

• If you wish to block depreciation from a specific date for an indefinite

the From Date and enter the date on which the block should start and uncheck the To Date.

• If you wish to allow book or tax depreciation to continue, but to block the other depreciation, un

You will need to specify your company’s own requirements per asset type when you create your “live” fixed assets register.

BLOCK ASSETS

This option will be used if you wish to stop depreciation on an asset for a specific period

Fixed Assets…Maintenance…Block Assets.

Here are some options to consider when blocking assets:

If you wish to block an asset between specific dates, check the From Date and To Date check boxes and enter the relevant dates.

If you wish to block depreciation until a specific date, uncheck the From Date, check the To Date and enter the last date to block depreciation in the To Date's field. The block applies from now on.

If you wish to block depreciation from a specific date for an indefinite

the From Date and enter the date on which the block should start and uncheck the To Date.

If you wish to allow book or tax depreciation to continue, but to block the other depreciation, uncheck the From and To of the depreciation that contin

need to specify your company’s own requirements per asset type when

This option will be used if you wish to stop depreciation on an asset for a specific period

If you wish to block an asset between specific dates, check the From Date and To

block depreciation until a specific date, uncheck the From Date, check the To Date and enter the last date to block depreciation in the To Date's

If you wish to block depreciation from a specific date for an indefinite period, check the From Date and enter the date on which the block should start and uncheck the

If you wish to allow book or tax depreciation to continue, but to block the other of the depreciation that continues.

(29)

G

LOCATIONS

If you want to keep track of where your assets are located within your business, you will utilise this option.

Locations are an optional, independent analysis code. You attach this code to an asset. You could use this code to represent floors in an office building, branches, or any other type of analysis you are interested in. You can make the use of location codes mandatory. You do this in the Defaults function as discussed earlier in the lesson.

ACTIVITY 1 - 6

The objective of this activity is to create locations 1. Go to Fixed Assets…Maintenance

2. Mike’s Photo Shop want to add the following locations:

Code: Location description:

PRI001 Printing Room

REC001 Reception

DBN001 Durban Branch

CPT001 Cape Town Branch

WHS001 Warehouse 1

OFF001 Office 1

3. Click on Add.

5. Complete the Location Code and above.

6. Click OK to save each location.

Fixe

If you want to keep track of where your assets are located within your business, you will utilise

Locations are an optional, independent analysis code. You attach this code to an asset. You represent floors in an office building, branches, or any other type of analysis you are interested in. You can make the use of location codes mandatory. You do this in the Defaults function as discussed earlier in the lesson.

lowing activity.

create locations. Maintenance…Locations. Mike’s Photo Shop want to add the following locations:

Location description:

Printing Room

Durban Branch

Cape Town Branch

and Description field for each location listed in the table

to save each location.

ixed Assets • 29

If you want to keep track of where your assets are located within your business, you will utilise

Locations are an optional, independent analysis code. You attach this code to an asset. You represent floors in an office building, branches, or any other type of analysis you are interested in. You can make the use of location codes mandatory. You do

(30)

7. Your list should display as follows:

H

CAPEX BUDGETS

The capex budgeting feature is optional. The system lets you track budgets for capital expenditure. You can create a budget per asset type and optionally per cost centre. You can also create timed bands of expenditure – you specify by date how much you expect to use. You can also enter a capex order first. When you create the asset, you can then link it to the capex order.

The advantage of using capex budgets is that you can produce reports at any stage that show over- and under-budgeted areas. You can also produce a capex budget cash flow forecast. The disadvantage is that it is a lot of work. If you have a much simpler global fixed asset budget, you may prefer to use the budgeting capabilities in your general ledger instead.

ACTIVITY 1 - 7

The objective of this activity is to create capex budgets.

Mike’s Photo Shop budgeted to spend the following amounts on the required assets when Mike started the business on the 1st of March:

• Vehicles – 90,000.00 • Equipment – 45,000.00 • Furniture – 80,000.00

• Computers – 17,000.00 [This will be spent in two phases; 10,000.00 initially and the balance two months later.]

Let us look at the computers first.

Up until May, Mike has kept track of the assets manually and now would like you to create the budgets to keep track of the assets.

1. Select Maintenance …Fixed Assets …Capex Budgets from the menu. 2. Click on Add. The following screen displays:

(31)

3. Now enter the Description of the budget as well as the the Replacement or New option.

4. Select the relevant Asset Type

5. The Cost Centre option is optional unless you have specified it t defaults you set up earlier.

6. Click on Add to create the Capex Phasing 7. The following warning will appear.

8. Select Yes if correct or No to change any details on the previous screens before continuing.

9. If you selected Yes, you will need to enter the

Fixe

of the budget as well as the Capitalisation Date and select option. These will be used for reporting purposes.

Asset Type from the dropdown options.

option is optional unless you have specified it to be compulsory in the

Capex Phasing. The following warning will appear.

to change any details on the previous screens before

you will need to enter the Capex Phasing.

ixed Assets • 31

and select

o be compulsory in the

(32)

10. Enter the Date

11. Select OK when correct.

12. Now click on Add

13. Your Computer budget

ate and the Amount.

when correct.

Add to create the further Capex Phasing budget

Computer budget should look as follows:

(33)

14. If you are satisfied that the budget is correct, select 15. Your Computer Capex Budget

this budget and draw reports as the project progresses.

16. Now create the rest (refer to the beginning of the activity) of the Mike’s Photo Shop.

I

CAPEX ORDERS

Now that your capex budgets are created, you may start allocating capex orders to the budgets.

If you create a capex budget for an asset type, then, when you create a new asset that belongs to that asset type, you can link the asset to a capex or

can then produce budget variance reports.

ACTIVITY 1 - 8

The objective of this activity is to create capex orders 1. Select Maintenance…Fixed Assets

2. Click on Add to enter a new Capex

Fixe

If you are satisfied that the budget is correct, select OK.

udget is now created and you will be able to allocate assets to this budget and draw reports as the project progresses.

rest (refer to the beginning of the activity) of the Capex budgets for

ORDERS

budgets are created, you may start allocating capex orders to the

If you create a capex budget for an asset type, then, when you create a new asset that belongs to that asset type, you can link the asset to a capex order. If you do this, the system can then produce budget variance reports.

create capex orders.

Maintenance…Fixed Assets…Capex Order. The following screen displays:

Capex Order.

ixed Assets • 33

is now created and you will be able to allocate assets to

Capex budgets for

budgets are created, you may start allocating capex orders to the

If you create a capex budget for an asset type, then, when you create a new asset that der. If you do this, the system

(34)

3. Enter the details for the purchase of the first computer.

4. When you are satisfied

5. Create an order for all the purchases of the fixed assets of Mike’s Photo Shop.

following register to assist you in this task. When you have created the order, make a tick next to the asset. This is good practice to ensure that you do not miss anything.

Asset

Photo Copier / Scanner (S/N 90867Y90)

Hi Tech Photo Printer (S/N 8768K0987)

Multi Function Laminator (S/N 09876T765432) HTH Office Desks Office Chairs Computer SEVO Computer WEVO Office Chairs

Removable drive for Server backups

Note the tick next to the SEVO Computer because we just ordered it.

Remember to enter the correct dates.

Enter the details for the purchase of the first computer.

When you are satisfied, click OK.

Create an order for all the purchases of the fixed assets of Mike’s Photo Shop.

following register to assist you in this task. When you have created the order, make a tick next to the asset. This is good practice to ensure that you do not miss anything.

Purchase date Photo Copier / Scanner (S/N 90867Y90) 1st March

Hi Tech Photo Printer (S/N 8768K0987) 1st March

Multi Function Laminator (S/N

09876T765432) 1

st March

HTH Office Desks 1st March

Office Chairs – 5 1st March

Computer SEVO 1St March

Computer WEVO 16 May

Office Chairs – 4 16 July

Removable drive for Server backups 31 July

tick next to the SEVO Computer because we just ordered it.

Remember to enter the correct dates.

Create an order for all the purchases of the fixed assets of Mike’s Photo Shop. Use the following register to assist you in this task. When you have created the order, make a tick next to the asset. This is good practice to ensure that you do not miss anything.

Value 90,000.00 50,000.00 75,000.00 5,000.00 300.00 each 8,000.00 6,000.00 300 each 1,800.00

(35)

J

OTHER

The following table explains the other options available under the maintenance node of the Fixed Asset Module:

Cost Centres Cost centers are analysis codes. You can use them to represent cost centers, projects, business areas, geographical areas, and so on.

Departments Once you create departments, you allocate them to cost centres. Then, when you produce certain reports, you can range by cost centre and/or departments.

People You can create people in the Fixed Asset Module. You will link these people to an asset or supplier.

Suppliers Create suppliers in the Fixed Asset Module. These suppliers resemble the companies you purchased the assets from.

Take on balances Record the assets take on balances here if you did not make provision for it in the General Ledger Module.

Override Assets Sometimes an asset's life changes dramatically from the original lifespan you intended. For example, it may suffer damage, or it may have been overused. On the other hand, you may wish to extend an asset's life.

In these, and other, cases, you want to specify directly how many periods of useful life remain for the asset. The system will then depreciate the remaining value equally over these periods.

ACTIVITY 1 - 9

The objective of this activity is to explore the other options.

Take a few minutes to explore and read the help files relating to the abovementioned options available within the Fixed Asset Module.

Take note that you already have a list of suppliers and people in the system.

(36)

K

CREATE ASSETS

You have now set up all the necessary defaults for Mike’s Photo Shop’s assets. It is now time to create the newly acquired assets that Mike purchased.

CREATE NEW ASSETS

We will demonstrate the process to create new assets by working through the following activity:

ACTIVITY 1 - 10

The objective of this activity is to create new assets. The following table outlines the assets that need to be created.

Asset Code Purchase date Price

Photo Copier / Scanner (S/N 90867Y90) PHO001 1st March 90,000.00

Hi Tech Photo Printer (S/N 8768K0987) HTP001 1st March 50,000.00

Multi Function Laminator (S/N 09876T765432) LAM001 1st March 75,000.00

HTH Office Desks (5 desks @ 1000 each) HTH001 1st March 5,000.00

Office Chairs – 5 CHR001 1st March 300.00

each

Computer SEVO COM001 1st March 8,000.00

Computer WEVO COM002 16 May 6,000.00

Office Chairs – 4 CHR002 16 July 300.00

each

Removable drive for Server (SEVO) backups REM001 31 July 1,800.00

Let us create them now.

1. Go to Maintenance…Fixed Assets…Assets from the main menu. 2. Click on Add.

(37)

4. Let us create Computer (Server

Refer to the Help Files by pressing F1 for more

Remember to select the correct

method that needs to be used for the asset.

Fixe

Let us create Computer (Server/SEVO) that Mike bought.

Refer to the Help Files by pressing F1 for more assistance on these fields if needed.

Remember to select the correct Asset Type because that indicates the depreciation method that needs to be used for the asset.

ixed Assets • 37

assistance on these fields if needed.

(38)

5. Click on the Asset Serial Numbers

6. Click Yes.

7. The system might prompt you sometimes that your periods are incorrect. If this happens, you will have to go and check your

8. In the Asset Serial Numbers 9. Under the Book and T

the asset and other relevant information. The system will automatically calculate the depreciation for the asset.

10. Click on the Finance regarding the asset.

11. Click on the Image

Asset Serial Numbers Tab. The following message will display:

The system might prompt you sometimes that your periods are incorrect. If this happens, you will have to go and check your Accounting Period

Asset Serial Numbers Screen, record the asset’s serial number

Book and Tax Depreciation tabs, detail the start date of the depreciation of the asset and other relevant information. The system will automatically calculate the depreciation for the asset.

Finance tab. This tab allows you to record all your financial arrangements regarding the asset.

Image tab. You can insert an actual picture of the asset here. Tab. The following message will display:

The system might prompt you sometimes that your periods are incorrect. If this Accounting Period set up.

Screen, record the asset’s serial number if applicable. tabs, detail the start date of the depreciation of the asset and other relevant information. The system will automatically calculate the

tab. This tab allows you to record all your financial arrangements

(39)

12. The Incident History tab will only be available if you have the CRM Add on modul registered. This tab will detail any activity on the asset account, such as, when they moved the asset to another location etc.

13. Now, create the rest of the assets of Mike’s Photo Shop.

End of the activity

CREATE SUB ASSETS

You will create sub assets in cases where you add components to a master asset.

Let us do the following activity to grasp this concept.

ACTIVITY 1 - 11

The objective of this activity is to create a sub asset. 1. Go to the Fixed Asset Module…

2. Click Add.

3. Create the following asset as displayed in the following screen:

Take note of the Master Asset field. This is where you indicate that the asset you are creating is a sub asset of a Master Asset.

Remember the sub asset must be of the same asset

Fixe

tab will only be available if you have the CRM Add on modul registered. This tab will detail any activity on the asset account, such as, when they moved the asset to another location etc.

Now, create the rest of the assets of Mike’s Photo Shop.

assets in cases where you add components to a master asset.

Let us do the following activity to grasp this concept.

The objective of this activity is to create a sub asset. …Maintenance…Assets.

Create the following asset as displayed in the following screen:

field. This is where you indicate that the asset you are creating is a sub asset of a Master Asset.

Remember the sub asset must be of the same asset type.

ixed Assets • 39

tab will only be available if you have the CRM Add on module registered. This tab will detail any activity on the asset account, such as, when they

(40)

4. Click OK.

You can link the asset to a Capex Order by selecting the applicable order from the

drop down list in the

The system will calculate the

according to the defaults set up under the Asset Type and Depreciation Types.

CREATE AN ASSET WITH MULTIPLE UNITS

The following activity will demonstrate the process.

ACTIVITY 1

The objective of this activity is to

Mike bought 5 Office Desks @ 1000.00 each.

1. Create the following asset as displayed in the next screen:

2. In the field, No of Units

3. You will also notice that you had to enter the full purchase price of all 5 desks, namely 5000.00 (5 x 1000.00)

process, always remember to enter the full purchase price.

You can link the asset to a Capex Order by selecting the applicable order from the drop down list in the Capex Order field on the screen.

The system will calculate the Depreciation, Insured Value

according to the defaults set up under the Asset Type and Depreciation Types.

CREATE AN ASSET WITH MULTIPLE UNITS

ty will demonstrate the process.

ACTIVITY 1 - 11

The objective of this activity is to create an asset with multiple units. Mike bought 5 Office Desks @ 1000.00 each.

Create the following asset as displayed in the next screen:

No of Units is where you indicate the amount of units you bought.

You will also notice that you had to enter the full purchase price of all 5 desks, namely (5 x 1000.00) in the Purchase Price field. This is a very important part of the process, always remember to enter the full purchase price.

You can link the asset to a Capex Order by selecting the applicable order from the

Insured Value and Scrap Value according to the defaults set up under the Asset Type and Depreciation Types.

create an asset with multiple units.

is where you indicate the amount of units you bought.

You will also notice that you had to enter the full purchase price of all 5 desks, namely field. This is a very important part of the